'India's economic growth on track'

The Financial Times reports that at a conference on "India-an emerging giant", India's Commerce and Industry Minister Kamal Nath stressed that the country's economic reforms are on track. He added that the economy was growting at a brisk 8%.

Nath conceded that manufacturing, which contributes around 17 per cent to GDP, needs a major expansion but he rejected the suggestion that China is going to be a manufacturing hub and India the services hub of the world.

India has a large industrial base and the capital utilization in the country is much more efficient than in China, he told the audience, pointing out that this is brought out by the comparison of the progress made by India and China vis-a-vis the foreign direct investment (FDI) received by them.

The manufacturing sector is poised to grow at a fast pace in India thanks to the fast growing Middle Class and increasing purchasing power of the people, he said.